IHS Markit director Rob Dobson said manufacturing will not provide any support to the wider economy in the third quarter, amid trade war and Brexit uncertainty.

He added: “The main constraint was the trend in new export business. Foreign demand declined for the first time since 2016 despite the weakness of sterling.”

EU UNCERTAINTY: Car industry (Image: GETTY )

Capital Economics’ Andrew Wishart said: “The possibility of a ‘no deal’ exit from the EU and a moderation in global growth is starting to weigh on the sector, and there is little chance of a rebound in manufacturing in the third quarter.”

l Retail sales struggled for growth in August as consumers focused their spending on pubs and entertainment.

Spending was up 4.5 per cent from the previous year, with ticket sales and pub spending boosting entertainment by 10.3 per cent, according to Barclaycard. But the British Retail Consortium-KPMG retail sales monitor showed UK retail sales growing just 0.2 per cent on a like-for-like basis.

BRC chief executive Helen Dickinson said: “The pressure on disposable income has meant some shoppers are less able to spend on the more discretionary non-food items such as clothing and footwear.”